Loading ...The approximate Yuan and Dollar exchange rate of 7 yuan to 1$ is the SAME as a big tariff on any American product going into China. At the same time, and China made product going into the USA gets a HUGE discount.
I once calculated using cost of living or wages needed in both countries, $1 should equal 2.75 Yuan to be a fair exchange rate. Those big businesses over there and their Chinese partners are going to protect themselves any way they can.
The Dollar Yuan peg has not yet joined my major reversal opinion. many other things have been reversing. Except this one. In fact with the “Crashing Yuan” news lately, its getting WORSE for the USA. They are obviously over riding any and all tariffs imposed on them.